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Problems of Women Entrepreneurs in India

Women in India are faced many problems to get ahead their life in business. A few problems cane be

detailed as;

1. The greatest deterrent to women entrepreneurs is that they are women. A kind of patriarchal male

dominant social order is the building block to them in their way towards business success. Male

members think it a big risk financing the ventures run by women.

2. The financial institutions are skeptical about the entrepreneurial abilities of women. The bankers

consider women loonies as higher risk than men loonies. The bankers put unrealistic and unreasonable

securities to get loan to women entrepreneurs. According to a report by the United Nations Industrial

Development Organization (UNIDO), "despite evidence that women's loan repayment rates are higher

than men's, women still face more difficulties in obtaining credit," often due to discriminatory attitudes

of banks and informal lending groups (UNIDO, 1995b).

3. Entrepreneurs usually require financial assistance of some kind to launch their ventures - be it a

formal bank loan or money from a savings account. Women in developing nations have little access to

funds, due to the fact that they are concentrated in poor rural communities with few opportunities to

borrow money (Starcher, 1996; UNIDO, 1995a). The women entrepreneurs are suffering from

inadequate financial resources and working capital. The women entrepreneurs lack access to external

funds due to their inability to provide tangible security. Very few women have the tangible property in

hand.

4. Women's family obligations also bar them from becoming successful entrepreneurs in both developed

and developing nations. "Having primary responsibility for children, home and older dependent family

members, few women can devote all their time and energies to their business" (Starcher, 1996, p.

8).The financial institutions discourage women entrepreneurs on the belief that they can at any time

leave their business and become housewives again. The result is that they are forced to rely on their

own savings, and loan from relatives and family friends.

5. Indian women give more emphasis to family ties and relationships. Married women have to make a

fine balance between business and home. More over the business success is depends on the support the

family members extended to women in the business process and management. The interest of the

family members is a determinant factor in the realization of women folk business aspirations.

6. Another argument is that women entrepreneurs have low-level management skills. They have to

depend on office staffs and intermediaries, to get things done, especially, the marketing and sales side

of business. Here there is more probability for business fallacies like the intermediaries take major part

of the surplus or profit. Marketing means mobility and confidence in dealing with the external world,

both of which women have been discouraged from developing by social conditioning. Even when they

are otherwise in control of an enterprise, they often depend on males of the family in this area.

7. The male - female competition is another factor, which develop hurdles to women entrepreneurs in

the business management process. Despite the fact that women entrepreneurs are good in keeping their

service prompt and delivery in time, due to lack of organisational skills compared to male entrepreneurs

women have to face constraints from competition. The confidence to travel across day and night and

even different regions and states are less found in women compared to male entrepreneurs. This shows

the low level freedom of expression and freedom of mobility of the women entrepreneurs.

8. Knowledge of alternative source of raw materials availability and high negotiation skills are the basic

requirement to run a business. Getting the raw materials from different souse with discount prices is the

factor that determines the profit margin. Lack of knowledge of availability of the raw materials and low-

level negotiation and bargaining skills are the factors, which affect women entrepreneur's business

adventures.

9. Knowledge of latest technological changes, know how, and education level of the person are

significant factor that affect business. The literacy rate of women in India is found at low level compared

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to male population. Many women in developing nations lack the education needed to spur successful

entrepreneurship. They are ignorant of new technologies or unskilled in their use, and often unable to do

research and gain the necessary training (UNIDO, 1995b, p.1). Although great advances are being made

in technology, many women's illiteracy, strucutural difficulties, and lack of access to technical training

prevent the technology from being beneficial or even available to females ("Women Entrepreneurs in

Poorest Countries," 2001). According to The Economist, this lack of knowledge and the continuing

treatment of women as second-class citizens keeps them in a pervasive cycle of poverty ("The Female

Poverty Trap," 2001). The studies indicates that uneducated women donot have the knowledge ofmeasurement and basic accounting.

10. Low-level risk taking attitude is another factor affecting women folk decision to get into business.

Low-level education provides low-level self-confidence and self-reliance to the women folk to engage in

business, which is continuous risk taking and strategic cession making profession. Investing money,

maintaining the operations and ploughing back money for surplus generation requires high risk taking

attitude, courage and confidence. Though the risk tolerance ability of the women folk in day-to-day life

is high compared to male members, while in business it is found opposite to that.

11. Achievement motivation of the women folk found less compared to male members. The low level of

education and confidence leads to low level achievement and advancement motivation among women

folk to engage in business operations and running a business concern.

12. Finally high production cost of some business operations adversely affects the development of

women entrepreneurs. The installation of new machineries during expansion of the productive capacity

and like similar factors dissuades the women entrepreneurs from venturing into new areas.